Schools to Use Redevelopment Funds : Simi Valley: The money will help build a new high school stadium and at least two gymnasiums. The city calls it a onetime deal.

The Simi Valley City Council has approved a request by school district officials to use redevelopment money to help finance several large capital improvement projects, including a new Royal High School stadium and at least two junior high school gymnasiums.

But the council warned school officials that the district may not be entitled to any more redevelopment money for future building needs.

“I just want everyone to realize that if the school district comes back five years from now and asks for another $500,000, it’s just not going to be there,” Councilman Bill Davis said. “If the school district is willing to gamble on that, then I’ll support it.”

The financing plan calls for the school district to sell up to $12.5 million in so-called certificates of participation. These are similar to bonds but do not require voter approval because they are not financed by an increase in local property taxes.

Instead, the school district will commit to using its share of local redevelopment funds--about $18 million--to pay back investors by the year 2022, when the certificates mature.

Because the school district’s redevelopment agreement with the city only extends to the year 2014, it requested an eight-year extension and dedication of future redevelopment money.

Davis in an earlier interview said it was the dedication of uncollected money that worried him most about the school financing plan. He cautioned that redevelopment funding is based on the belief “that new companies are going to come in and build on vacant land. What if they don’t?”

School officials said the capital improvement projects will be built in phases over several years and can be scaled back if the costs exceed expectations or revenue falls short.

Deputy Supt. Mary Beth Wolford also noted that the city placed a 3.5% growth cap on the amount of redevelopment money that it will release annually to the district for the projects. She said the district will use its own money to pay any costs not covered by the redevelopment funds.

“We think we’ve planned prudently,” Wolford said.

Because it has become difficult to get voter approval for local bonds, certificates of participation have become “the largest single type of debt instrument issued in California,” said Stephen A. Shea, director of policy research for the California Debt Advisory Commission.

Some investors have become nervous about these certificates with the state’s unstable finances and because the Richmond school district in Northern California defaulted on its certificates last year, Shea said. But with the backing of redevelopment funds, Simi Valley Unified’s obligations will probably be a safe investment, Shea said.

The certificate sale is expected to pay for a new stadium at Royal High School, estimated to cost $3.1 million, and at least two junior high school gymnasiums at a cost of about $2.5 million each, Wolford said. Depending on how far the money stretches, a third junior high school gymnasium could be built. Wolford said it was too early to say which schools would get the gymnasiums.

In addition, $854,000 will be used to build a new multipurpose room at Hillside Junior High, and $500,000 is earmarked for improvements at the Simi Valley High School stadium.

Wolford said that the new stadium will be the first project built and that construction would probably start next year. If all goes as planned, she said, the stadium could open by late 1993 or early 1994.

“This is very good news,” Wolford said of the planned projects. “This is a major milestone for the school board.”

The new stadium, seating about 7,000, will allow Royal’s football team to play at home, instead of at Moorpark College.

The Royal High band will also be able to hold its annual musical competition, a fund-raiser involving 35 school bands, at the school. The event has been held at faraway Ventura High School for the past two years.

“If it were up to the kids, they would start building the stadium right now,” said band Director Robert Aguilar.

Times staff writer Phil Sneiderman and correspondent Larry Speer contributed to this story.